Credit

Credit

A&E candles's avatarA&E candlesRegular Visitor

I have a secure credit card an that has helped with my credit score but, I needed to know what else could help increase my score

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Parcoeliz's avatarParcoelizOccasional Visitor

Cell phone account in your name, utilities in your name, just paying all of your bills on time, NEVER late.
My husband and I signed up/applied for a gas station card (saves 5¢ a gallon) which has added and raised our credit.
It takes time and patience. Good luck!

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trust me's avatartrust meVisitor

Go to okinus they have a 90 days same as cash program help my credit quickly, they report your payment to all 3.

Re: Credit

n8tureboy's avatarn8tureboyFrequent Contributor

Sign up with Credit Karma.com and watch your credit score go up monthly as long as you're diligent in your finances. Good luck!

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Vixxter's avatarVixxterNew Member

You want at least three credit lines reporting to all agencies, five is best. Two installment and three revolving. Never go over 30% on any card, even if you pay it off each month.

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Tovey's avatarToveyNew Member

Aaron's helps. 90 days same as cash. Student loans help. Might be worth going to school and take a small loan. I was approve for an American express through USAA when my credit was fair.
I also talk to USAA credit counselors. It's a free service.

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LadyMichelle's avatarLadyMichelleRegular Visitor

I'm curious why never going over 30% of my credit limit will help. I use a rewards card and make all daily purchases on it, plus there were some large charges for funeral expenses (ugh, not nice to deal with!). At a quick guess, I'd say I routinely go over 65% but rarely past 90% of the limit. I do pay off the balance in full each month. Have I been harming my credit score terribly? Also, I'm wondering how much impact my income has on credit score? Since my husband works and I do not have that kind of job, my income might show up at zero... Thanks for the replies!

Re: Credit

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WEBSITE GURU's avatarWEBSITE GURUTrusted Contributor

TO ALL;

 

Your "Credit Score" is Credit Reporting Bureau Dependent (i.e. different depending upon which Credit Reporting Bureau is used), result of "mysterious algorithms" known only to the Credit Reporting Bureaus, and varies from person to person.

 

FICO Score Pie Chart

 

That said, here is some "general information" concerning how your FICO® Score is calculated:

 

1. Payment History - On Time Payments (35%)

The first thing any lender wants to know is whether you've paid past credit accounts on time. This is one of the most important factors in a FICO® Score.

 

2. Amounts Owed - Capacity Used (30%)

Having credit accounts and owing money on them does not necessarily mean you are a high-risk borrower with a low FICO® Score.

 

3. Length of Credit History (15%)

In general, a longer credit history will increase your FICO® Score. However, even people who haven't been using credit long may have a high FICO Score, depending on how the rest of the credit report looks.

Your FICO Score takes into account:

 

  • how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts
  • how long specific credit accounts have been established
  • how long it has been since you used certain accounts

4. Types of Credit in Use (10%)

The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

 

5. New credit - Past Credit Applications (10%)

Research shows that opening several credit accounts in a short period of time represents a greater risk - especially for people who don't have a long credit history.

 

IMPORTANT: Your FICO® Score only looks at information in your credit report

Your credit score is calculated from your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.

 

ONE LAST THING: Keep your Debt-to-Income (DTI) Ratio Low.

 

Your debt-to-income ratio can be a valuable number -- some say as important as your credit score. It's exactly what it sounds: the amount of debt you have as compared to your overall income.

Lenders look at this ratio when they are trying to decide whether to lend you money or extend credit. A low DTI shows you have a good balance between debt and income. As you might guess, lenders like this number to be low -- generally you'll want to keep it below 36, but the lower it is, the greater the chance you will be able to get the loans or credit you seek.

 

I hope this helps someone.